HomeMy WebLinkAboutMinutes-02-02-84-Adjourned Regular Meeting.. . 1 M •
OF THE CITY . DUZEY
ADJOURNED REGULAR E
E.R ..Y 2, 1984
The City Council of the City of Downey held an adjourned regular meeting at
5:00 p.m., February 2, 1984, in the Council Chamber of the Downey City Hall, Mayor
Robert G. Cormack presiding.
PRESENT: Council Members:
Robert G. Connack Mayor
Randall R. Barb
James T. Quinn
ABSENT: Ted H. Jackman Mayor Pro Tem
Bob Davila
ALSO PRESENT: Bud Ovrcm, City Manager
Lee Powell, Director of Administrative Services
Robert L. Shand, City Clerk -Treasurer
The meeting was recessed to closed session from 5:02 p.m. to 5:15 p.m. to
discuss personnel. The meeting resumed with Council Members Barb, Quinn, Cormack
present; Council Mete s Jackman, Davila absent. It was annou ced there was no
action taken in closed session.
Civic Center Refinancing
Councilman Barb inquired if there would be substantial savings in interest if
the amount of the debt were reduced to 25 years and then not pay the interest -only
payments for the three years.
Mr. Powell commented regarding the analysis that was conducted on the differ-
ent methods and terms of financing. He said the financing method proposed was the
final outcome of the analysis.
Mr. Ovrom prefers the graduated approach to the financing.
Representatives of Dean, Witter, Reynolds and Orrick, Herrington & Sutcliffe
responded to questions concerning the savings debt that would result if the term
of the bonds was reduced from 28 to 25 years and eliminate the years involving the
interest -only payments. It was indicated there would be present value savings of
$1,060,000. The interest rate is 9.86 percent.
Mr. Ovrom indicated it is his best business judgment that the City is better
off with the graduated scale because it would be able to take the savings and
invest it at a higher rate.
A discussion was held regarding what determines "present value savings."
RESOLUTION NO.
A RESOLUTION OF THE CITY OF DOWNEY APPROVING THE FINAL
TERMS AND CONDITIONS OF THE CITY OF DOWNEY CIVIC CENTER
PROJECT AND AUTHORIZING THE ISSUANCE OF 1984 REFUNDING
CERTIFICATES OF PARTICIPATION - CITY OF DOMEY CIVIC
CENTER PROJECT
The Resolution was read by title only. It was moved by Councilman Quinn and
seconded by Mayor Cormack to waive further reading and to adopt.
It was moved by Councilman Barb to amend the Resolution by changing "rental
payment schedule" to read 1125-year straight line schedule." The motion died for
lack of a second.
Councilman Barb expressed opposition to the proposed savings when it could
be higher. Also, he said, the dates and amounts are different in the paperwork he
received five minutes before the meeting then they are in the proposed Resolution.
AYES: 2 Council Members: Quinn, Commack
NOES: 1 Council Member: Barb
ABSENT: 2 Council Members: Jackman, Davila
Council Minutes 2/2/84 (adj.) -1-
(See later action requesting determination concerning vote on the Resolution.)
Further discussion was held regarding the savings that will result from re-
financing the Civic Center Bonds.
It was moved by Councilman Barb, seconded by Councilman Quinn, and passed by
the follawi.ng vote that the Budget next year have a positive cash flow of $1.4
million to be used for the bonds.
AYES: 3 Council Members: Barb, Quinn, Cormack
ABSENT: 2 Council Members: Jackman, Davila
Councilman Barb requested a written opinion concerning whether, under the City
Charter, two affirmative votes out of three Council Members present constitutes the
passing of a Resolution. —
The meeting was adjourned to 5:00 p.m., February 7, 1984, in the
Chamber of the Downey City Hall.
;adoV
Robert L. Shand, City Clerk -Treasurer
Council Hinutes 2/2/84 (adj .) --2-